China Says Australia Ties OK Despite Rio-BHP Deal

State-owned Aluminum Corp. of China, or Chinalco, expressed disappointment over losing out to BHP Billiton, and Chinese steel makers have revived objections that the tie-up might give the mining giants excessive influence over iron-ore pricing.

Last week, China's steel industry group said it opposes the proposed venture as a monopolistic move.

Under a new law that took effect Aug. 1, China can pursue anti-monopoly complaints against companies outside China if their dealings are seen to restrict competition in its domestic market.

The collapse of Chinalco's deal with Rio Tinto has prompted commentary in China's state-run media suggesting Beijing might adopt such a strategy.

China would investigate if it received any complaints under the law, but it has not received any such applications yet, Yao said.

He said Chinese companies would persist in seeking strategic overseas investments, despite running into occasional obstacles.

"Now is a good opportunity for Chinese companies to 'go out' given our growing economy and foreign reserves and the decline in prices for some companies," Yao said.